Philippine Inflation Slows For Second Month
Bloomberg, The Freeman, and many other sources are saying that Philippine inflation has fallen to 11.2% as prices on services and commodities such as gasoline and food have fallen. However, the price of gasoline is considered risky as it is highly volatile commodity. Gas prices have fallen 50% since May which were a major reason for the Philippine Central Bank’s raising of interest rates in recent months. A move intended to stem inflationary pressures.
Growth of the Philippine economy is expected to be slower this year and likely less than the 5% rate the government had hoped for. Most put the GNP below 3.5% for the year of 2008.
The Philippine Central Bank meets on November 20th where it may decide to adjust the interest rate but indications are that the bank will take a wait and see approach for now.
Slower inflation is good for both for the expat living In the philippines and the Filipino as well. The stronger dollar is probably harmful for most Filipino but advantages for the American expat living in the Philippines.
Like this post? Subscribe to my RSS feed and get loads more!